Maximum Financing Amount
7.500.000,00€
Overall Financing Term
Up to 20 years
Grace Period
Up to 5 years
Maximum Mutual Guarantee
Up to 70% of outstanding principal for operations with a term of up to 10 years
Up to 75% for operations with a term of over 10 years and up to a maximum of 15 years
Up to 80% for operations with a term of over 15 years and up to a maximum of 20 years
Spread
Interest will be fully borne by the beneficiary companies and settled quarterly in arrears.
By agreement between the credit institution and the beneficiary, either a fixed or variable interest rate will apply:
Fixed rate: corresponds to the Euribor swap rate for the operation’s term (rounded up to the nearest year), plus a maximum spread of 3.5%.
The Euribor swap rate will be that published by Intercontinental Exchange (ICE), at https://www.theice.com/marketdata/reports/180 based on the 11:00 a.m. fixing on the second business day prior to the contract date.
Variable rate: corresponds to the 3, 6, or 12-month Euribor, plus a maximum spread of 3.5%.
The Euribor rate will be determined either as:
The simple arithmetic average of the daily Euribor quotes of the previous month, or
The rate verified on the second business day before the start of each interest period.
If a variable interest rate is applied during the utilization period, after that period ends, the credit institution and the beneficiary may agree to switch to a fixed rate.
Subsidies
The guarantee fee is fully subsidized by Turismo de Portugal, up to a maximum of 1.70%, according to the following scale:
Up to 1.3% for operations with a term of up to 10 years
Up to 1.5% for operations over 10 years and up to 15 years
Up to 1.7% for operations over 15 years and up to 20 years
Credit Collateral
Autonomous first-demand guarantee issued by SGM, covering up to 70%, 75%, or 80% of the outstanding principal.
The credit institution and SGM may require additional collateral during credit risk analysis. Such collateral will be established pari passu in favor of both entities to secure the company’s obligations under the autonomous guarantee and Turismo de Portugal (TP), in case of subsidy recovery due to termination.
During the financing term, the credit institution may request additional guarantees, also pari passu, to cover obligations arising from the financing, SGM guarantee, and TP subsidy recovery.
Fees, Charges, and Costs
Credit institutions may charge the beneficiary a structuring and arrangement fee of up to 1% flat.
SGMs may charge an arrangement fee of up to 0.5% of the operation amount (capped at €2,500), negotiable with the company.
In all other respects, operations under this Credit Line shall be exempt from:
other commissions and fees usually charged by the credit institution
other similar charges applied by the Mutual Guarantee System
Without prejudice to the fact that all costs and charges associated with the contracting of credit operations shall be borne by the beneficiary company, namely those related to property appraisal, registrations and deeds, taxes or fees, and other similar expenses.
The exemption from expenses includes securities custody, provided that the securities account is used exclusively for operations with a Mutual Guarantee.
For financing contracted under a fixed interest rate, credit institutions may pass on to companies the costs incurred with the reversal of the fixed rate, in the event of total or partial early repayment.
Mutualism
Beneficiary companies of autonomous guarantees issued by SGM under this Credit Line must purchase SGM shares amounting to 2% of the guarantee value, thereby joining the mutual system.
These shares may later be sold back to SGM (or to a designated buyer) at nominal value, once legal requirements are met and the guarantee ends.